Pay and Specialty - Discovery Channel

Individual Pay, Pay-per-view, Video-on-demand and Specialty Services - Financial Summary 2011-2015

Table of Contents

Undertaking # Service Name Licensee Licensee Ultimate Owner Type Year
315413765 Discovery Channel 2953285 Canada Inc. BCE Inc. Specialty (category A service) 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 37,017,632 37,561,048 1.47 36,916,596 -1.72 39,298,440 6.45 36,525,988 -7.05 -0.3
DTH revenue 13,001,758 12,813,795 -1.45 12,759,759 -0.42 12,561,789 -1.55 12,043,683 -4.12 -1.9
Local advertising revenue 0 0 0 0 0
National advertising revenue 49,868,798 48,762,172 -2.22 51,649,777 5.92 47,768,274 -7.52 47,735,419 -0.07 -1.1
Other revenue 24,654 58,050 135.46 45,946 -20.85 193,999 322.23 1,067,848 450.44 156.5
Total Revenue 99,912,842 99,195,065 -0.72 101,372,078 2.19 99,822,502 -1.53 97,372,938 -2.45 -0.6

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 50,818,252 55,167,950 8.56 60,635,604 9.91 59,228,062 -2.32 59,666,785 0.74 4.1
Technical 987,812 1,038,482 5.13 1,081,021 4.10 1,102,134 1.95 1,117,731 1.42 3.1
Sales and Promotion 6,798,612 5,479,653 -19.40 7,315,624 33.51 6,473,779 -11.51 6,805,641 5.13 0.0
Administration and General 4,736,041 3,826,290 -19.21 4,519,959 18.13 4,145,161 -8.29 4,373,745 5.51 -2.0
Total Expenses 63,340,717 65,512,375 3.43 73,552,208 12.27 70,949,136 -3.54 71,963,902 1.43 3.2

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 36,572,125 33,682,690 27,819,870 28,873,366 25,409,036
Depreciation 1,484,450 2,014,491 35.71 1,596,609 -20.74 1,666,863 4.40 2,007,156 20.42 7.8
P.B.I.T. 35,087,675 31,668,199 26,223,261 27,206,503 23,401,880
Interest Expense 3,381 122,225 >999± 2,428,788 >999± 2,685,969 10.59 5,919,267 120.38
Adjustments - Gain (Loss) 325,546 -2,498,854 -867.59 0 -100.00 0 0
Pre-tax Profit 35,409,840 29,047,120 23,794,473 24,520,534 17,482,613

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 20,653,749 23,117,073 11.93 30,324,090 31.18 31,788,851 4.83 27,636,839 -13.06 7.6
Script & concept 201,333 293,400 45.73 716,682 144.27 317,375 -55.72 305,822 -3.64 11.0
Filler Programming + Program Production 19,071,646 19,984,708 4.79 18,315,418 -8.35 15,333,669 -16.28 19,877,572 29.63 1.0
Investment in Programming 0 0 0 0 0
Total Canadian Programming 39,926,728 43,395,181 8.69 49,356,190 13.74 47,439,895 -3.88 47,820,233 0.80 4.6
Canadian Programming/Revenue (%) 39.96 43.75 48.69 47.52 49.11

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 6,171,812 4,967,867 -19.51 5,019,206 1.03 4,724,466 -5.87 4,945,582 4.68 -5.4
Average Staff Count 49.5 48 -3.03 42 -12.50 40 -4.76 44 10.00
Avg Remuneration ($) 124,683 103,497 -16.99 119,505 15.47 118,112 -1.17 112,400 -4.84 -2.6

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 8,113,810 7,899,862 -2.64 7,733,150 -2.11 7,560,436 -2.23 7,202,041 -4.74 -2.9

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 36.6 34.0 27.4 28.9 26.1
P.B.I.T. Margin 35.1 31.9 25.9 27.3 24.0
Pre-tax Margin 35.4 29.3 23.5 24.6 18.0

CAGR = Compound Annual Growth Rate

DTH = Direct-to-Home

SMATV = Satellite Master Atenna Television

P.B.I.T. = Profit Before Interest and Tax

Var = Variation

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